Why Indians Still See Stock Market as Risky - Even After so many Years
Understand the emotional, cultural, and historical reasons why most Indian families still avoid the stock market - and how to break free from the fear.
“Stock Market mein paisa doob jaata hai, Uncle. It’s not for people like us.”
That’s what Bunny whispered.
I was quiet.
Not because I disagreed… but because I’d heard this sentence hundreds of times.
From cab drivers to my college toppers.
From 22-year-old interns to 60-year-old retirees.
In India, the stock market isn’t seen as a place to grow wealth.
It’s seen as a dangerous casino.
Even after 20+ years of data, proving long-term wealth creation…
Millions still believe: “Stock Market = Risky = Permanent Money Loss = Social Reputation Loss.”
Bunny’s Dilemma: “But why does it feels so dangerous, Uncle?”
“It’s just like gambling.”
I smiled. Not a “you’re wrong” smile.
But the kind of smile that says:
“Bunny, you're not alone. I felt the same when I started.”
Guide Mode Activated…
“Tum chai peeyo. Main samjhaata hoon.”
I pulled my chair closer, stirred the sugar in my tea, and said:
“Bunny, log darr jaate hain kahaniyon se.”
Let me explain, point by point, SIP by SIP.
Why Indians feel the stock market is risky (Even when it’s not)
1. We remember scams, not success stories
From Harshad Mehta to 2008 crash to 2020 lockdown fall -
Every Indian family has heard a “market ne barbaad kar diya” story.
But no one will tell you the story of so many people, who did SIPs for 20 years and retired early?
There is No TRP and No Masala in these stories.
“We remember pain like it happened yesterday.
We forget growth - even when it’s happening today.”
2. Parents taught us: Paisa safe hona chahiye.
“FD mein daal do. Gold le lo. Ghar khareed lo.”
These weren’t investment tips.
They were emotional survival strategies.
Our elders survived without pensions. Without social safety nets.
They saw land double. They saw gold triple.
Stock Market? They only heard of scams.
“In India, paisa safe hona chahiye.
Grow hona optional hai. But safe toh hona hi chahiye.”
3. Stock Market = Satta Bazaar in family WhatsApp University
Every market dip is a panic message.
“Market gir gaya, bro! Nikal jao!”
No one sends,
“Stock Market ne chup-chap 5-6 saalo mein paisa double kar diya.”
“News channels and WhatsApp groups don’t report patience.
They only report panic.”
4. Zero financial literacy = Zero market trust
We never learnt about compounding money in school.
Nobody told us what an index fund is.
And when we hear words like “arbitrage” “beta” “small-cap” -
We shut the laptop.
“When something sounds like a puzzle, we don’t invest. We avoid.”
5. Gold and Real Estate = Default Indian Settings
You can wear gold.
You can sit inside your property.
But stocks?
They’re invisible. Volatile. And you can't gift them at a shaadi.
“Emotional attachment beats logical return, every time.”
6. It feels like gambling. No one explained the rules.
People think:
Stocks go up and down like cricket scores.
You need to time the market.
“Kal kharido, parso bech do.”
Because no one taught them discipline investing.
“The market isn’t a casino.
But if you walk in without knowing the rules… it will feel like one.”
7. Lack of trust in advisors and regulators
Bunny whispered,
“Uncle, advisor ko paise dena matlab naya scam invite karna lagta hai…”
And he wasn’t wrong.
Between mis-selling ULIPs, ponzi schemes and aggressive cold calls -
Middle class India lost trust in people wearing ties.
“Trust can’t be rebuilt with brochures.
It takes chai, clarity, and consistency (3Cs).”
8. We want guarantees - not possibilities
“Uncle, FD gives 7% guaranteed.
Mutual fund? Kuch bhi ho sakta hai.”
True. But also…
“Because of Inflation, FD guarantee is slow money erosion.
Market offers long-term wealth creation.”
Uncle’s Simple Chai Plan
I gave Bunny 3 filters to shift his mindset:
1. Don’t compare 6-month losses with 20-year gains.
You can’t judge a movie by the trailer.
You can’t judge SIPs by 1-year return.
2. Learn basics, skip the complicated terms.
Forget alpha, beta, gamma, theta.
Understand “needs vs wants” and start saving 5,000 a month.
(We talked about this in our previous blog: Needs vs Wants – Master This One Rule to Save Big)
3. Don’t invest in stocks. Invest in businesses.
When you buy a stock or a mutual fund, you own a part of India’s business landscape.
When you buy a stock, you’re co-owning that company.
That’s not gambling.
That’s ownership.
“Paisa share market mein nahi. Vishwas mein daalo.”
Bunny’s Transformation
Within a month, Bunny had:
Started SIP in an Index Fund.
Started reading mutual fund basics.
Taught his mom how index funds work.
Told his office group: “Stock market is not risky. Ignorance is.”
That’s it.
He didn’t become W.B. (Write in the comments, who ‘W.B.’ is?)
He became Calmer. Smarter. A little more free.
If Bunny can evolve, so can you.
Fear is not a financial problem.
It’s an emotional inheritance.
But the good news?
You can unlearn it.
Slowly.
With chai.
With stories.
With someone who explains things, like the Investing Uncle way.
“Stock market is not risky, bro. But investing blindly definitely is.”
Did this blog make you feel seen or scammed?
Did it help you breathe easier about investing or not?
If yes, then forward it to someone who’s still stuck between FD, fear and WhatsApp University.
And if you want more stories like this,
subscribe to the blog.
Because Investing Uncle doesn’t sell products.
He just serves chai, chat, and clarity (3Cs).
Hope this blog adds real value to your long-term investing journey.
If YES, Maybe you treat Uncle with a cup of Tea?
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Any person referred to in this post is purely coincidental. The characters, names, and situations mentioned are for illustrative and educational purposes only and are not intended to represent any real individual.
‘Investing Uncle’ is NISM Series V-A Certified (Mutual Fund Distributor’s Certification Examination) conducted by National Institute of Securities Markets (NISM)
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